Over the Past Thirty Years, Bank Loans as a Percentage

question 76

Multiple Choice

Over the past thirty years, bank loans as a percentage of total credit:

• A) increased from less than sixty percent to over 90 percent.
• B) stayed fairly constant at around eighty percent.
• C) decreased from accounting for virtually all of the credit to less than sixty percent.
• D) dropped from seventy five percent to less than thirty percent.

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Definitions:

Expansionary Fiscal Policy

Government policy aimed at stimulating economic growth by increasing government spending, reducing taxes, or both.

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheating economy by increasing interest rates and reducing the supply of money.

Politicians

Individuals involved in politics, especially those holding or seeking office in government.

Fiscal Policy

Government policy relating to taxation and spending, used to influence economic conditions.